8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): April 29, 2008

SONIC AUTOMOTIVE, INC.

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation)

1-13395	56-201079
(Commission File Number)	(IRS Employer Identification No.)

6415 Idlewild Road, Suite 109 Charlotte, North Carolina	28212
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (704) 566-2400

N/A

(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On April 29, 2008, we issued a press release announcing results for our fiscal quarter ended March 31, 2008.

A copy of the press release is attached hereto as Exhibit 99.1. A copy of the earnings call presentation materials is attached hereto as Exhibit 99.2.

Item 7.01. Regulation FD Disclosure.

On April 29, 2008, we issued a press release announcing the approval of a quarterly cash dividend.

A copy of the press release is attached hereto as Exhibit 99.3.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

99.1	Press release of Sonic Automotive, Inc. dated April 29, 2008
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 29, 2008

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SONIC AUTOMOTIVE, INC.
By:	/s/ Stephen K. Coss
	Stephen K. Coss
	Senior Vice President and General Counsel

Dated: April 29, 2008

2

INDEX TO EXHIBITS

Exhibit No.	Description
99.1	Press release of Sonic Automotive, Inc. dated April 29, 2008
99.2	Earnings call presentation materials
99.3	Press release of Sonic Automotive, Inc. dated April 29, 2008

3

EX-99.1

Exhibit 99.1

Sonic Automotive, Inc. Reports First Quarter Earnings In Line with Company Expectations

CHARLOTTE, N.C. – April 29, 2008 – Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today reported that its 2008 first quarter earnings from continuing operations were $18.0 million, or $0.44 per diluted share, compared to $22.3 million, or $0.49 per diluted share, for the same period in 2007.

Total revenue for the first quarter of 2008 increased 1.0% over the prior year period primarily from the impact of acquisitions made during 2007. Overall same store revenue declined 4.0% over the prior year quarter with softness in new vehicle sales being partially offset by growth in used vehicles and finance and insurance. On a same store basis compared to the same quarter last year, new vehicle retail revenues declined 8.2%, used vehicle retail revenues were up 11.5%, fixed operations revenue was up 0.7% and finance and insurance revenues were up 5.9%.

B. Scott Smith, the Company’s President said, “Our results for this quarter are in line with our expectations given our previous forecast of a soft new vehicle sales environment through the first half of this year. To confront these challenges, we are continuing our strong focus on the higher-margin segments of our business – fixed operations, finance and insurance, and used vehicles. In particular, the growth in our used vehicle business demonstrates the strength of our business model and strategy as our stores continue to embrace the concepts we have rolled out over the last 24 months. The quarter’s results met our internal forecasts and, as a result, we remain comfortable with our 2008 continuing operations EPS target of $2.35 to $2.50 per diluted share.”

Presentation materials for the Company’s April 29, 2008 earnings conference call at 11:00 A.M. (Eastern) can be accessed on the Company’s website at www.sonicautomotive.com by clicking on the “For Investors” tab and choosing “Webcasts & Presentations” on the left side of the monitor.

To access the live broadcast of the call over the Internet go to: www.ccbn.com or www.sonicautomotive.com

A live audio of the call will be accessible to the public by calling (877) 791-3416. International callers dial (706) 643-0958. Callers should dial in approximately 10 minutes before the call begins.

A conference call replay will be available one hour following the call for seven days and can be accessed by calling: 800-642-1687, Conference ID: 43381696, International callers dial (706) 645-9291.

About Sonic Automotive

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 168 franchises. Sonic can be reached on the web at www.sonicautomotive.com.

Included herein are forward-looking statements, including statements pertaining to anticipated diluted earnings per share from continuing operations. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risk and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2007. The Company does not undertake any obligation to update forward-looking information.

SONIC AUTOMOTIVE, INC.

RESULTS OF OPERATIONS

(in thousands, except per share, unit data and percentage amounts)

(Unaudited)

	Three Months Ended
	3/31/2008			3/31/2007
Revenues
New retail vehicles	$	985,274		$	1,032,994
Fleet vehicles		107,592			88,805
Total new vehicles		1,092,866			1,121,799
Used vehicles		372,559			320,133
Wholesale vehicles		88,911			113,332
Total vehicles		1,554,336			1,555,264
Parts, service and collision repair		296,049			281,093
Finance, insurance and other		51,137			46,940
Total revenues		1,901,522			1,883,297
Total gross profit		305,643			298,176
SG&A expenses		242,451			231,507
Depreciation		7,935			5,572
Operating income		55,257			61,097
Interest expense, floor plan		13,397			15,853
Interest expense, other		11,863			8,554
Other (expense) / income		70			14
Income from continuing operations before taxes		30,067			36,704
Income taxes		12,027			14,428
Income from continuing operations		18,040			22,276
Discontinued operations:
Loss from operations and the sale of discontinued franchises		(5,473	)		(3,154	)
Income tax benefit		1,641			869
Loss from discontinued operations		(3,832	)		(2,285	)
Net income	$	14,208		$	19,991
Diluted:
Weighted average common shares outstanding		43,845			47,938
Earnings per share from continuing operations	$	0.44		$	0.49
Loss per share from discontinued operations	($	0.09	)	($	0.05	)
Earnings per share	$	0.35		$	0.44
Gross Margin Data (Continuing Operations):
Retail new vehicles		7.4	%		7.4	%
Fleet vehicles		2.1	%		2.2	%
Total new vehicles		6.8	%		7.0	%
Used vehicles retail		8.9	%		9.6	%
Total vehicles retail		7.4	%		7.6	%
Wholesale vehicles		(0.9	%)		0.4	%
Parts, service and collision repair		49.7	%		50.1	%
Finance, insurance and other		100.0	%		100.0	%
Overall gross margin		16.1	%		15.8	%
SG&A Expenses (Continuing Operations):
Personnel	$	136,485		$	130,500
Advertising		16,343			15,089
Facility rent		25,620			25,407
Other		64,003			60,511
Total	$	242,451		$	231,507
SG&A Expenses as % of Gross Profit
Personnel		44.7	%		43.8	%
Advertising		5.3	%		5.1	%
Facility rent		8.4	%		8.5	%
Other		20.9	%		20.2	%
Total		79.3	%		77.6	%
Operating Margin %		2.9	%		3.2	%

	Three Months Ended
	3/31/2008			3/31/2007
Unit Data (Continuing Operations):
New retail units		28,941			30,342
Fleet units		4,355			3,736
Used units		18,511			16,300
Wholesale units		10,749			12,438
Average price per unit:
New retail vehicles	$	34,044		$	34,045
Fleet vehicles		24,705			23,770
Used vehicles		20,126			19,640
Wholesale vehicles		8,272			9,112
Other Data:
Same store revenue percentage changes:
New retail		(10.0	%)
Fleet		12.4	%
Total New Vehicles		(8.2	%)
Used		11.5	%
Parts, service and collision repair		0.7	%
Finance, insurance and other		5.9	%
Total		(4.0	%)
Balance Sheet Data:
	3/31/2008			12/31/2007
ASSETS
Current Assets:
Cash and cash equivalents	$	5,112		$	16,514
Receivables, net		305,624			347,309
Inventories		1,182,086			1,093,017
Assets held for sale		134,056			87,342
Other current assets		39,089			35,879
Total current assets		1,665,967			1,580,061
Property and Equipment, Net		365,653			286,591
Goodwill, Net		1,248,854			1,276,074
Other Intangibles, Net		111,306			111,342
Other Assets		32,336			28,676
TOTAL ASSETS	$	3,424,116		$	3,282,744
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities:
Floor plan notes payable	$	1,186,123		$	1,125,670
Other current liabilities		239,041			247,658
Liabilities associated with assets held for sale		64,043			48,592
Current maturities of long-term debt		4,338			4,197
Total current liabilities		1,493,545			1,426,117
LONG-TERM DEBT		783,348			697,800
OTHER LONG-TERM LIABILITIES		237,771			227,999
STOCKHOLDERS’ EQUITY		909,452			930,828
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	3,424,116		$	3,282,744
Balance Sheet Ratios:
Current Ratio		1.12			1.11
Debt to Total Capital, Net of Cash		46.3	%		42.4	%

EX-99.2

Exhibit 99.2

Cautionary Notice Regarding

Forward-Looking Statements

•This presentation contains statements that constitute

“forward-looking statements”

within the meaning of

Section 27A of the Securities Act of 1933 and Section 21E

of the Securities Exchange Act of 1934.

•These forward-looking statements are not historical

facts, but only predictions by our company and/or our

company’s management.

•These statements generally can be identified by lead-in

words such as “believe,”

“expect”

“anticipate,”

“intend,”

“plan,”

“foresee”

and other similar words.  Similarly,

statements that describe our company’s objectives, plans

or goals are also forward-looking statements.

•You are cautioned that these forward-looking statements

are not guarantees of future performance and involve

risks and uncertainties, and that actual results may differ

materially from those projected in the forward-looking

statements as a result of various factors. Among others,

factors that could materially adversely affect actual

results and performance include those risk factors that

are listed in Sonic Automotive’s Form 10-K for the year

ended December 31, 2007.

First Quarter 2008

Earnings Review

April 29, 2008

Discussion Topics

1

•Building for the long term

Update on strategic initiatives

•Quarter review

•Questions

•Closing comments

Develop

Associates

Well Run

Operations

Valued

Customers

Grow

the

Business

•Deliver Industry Leading

Customer Experience

•Differentiate through target

based Marketing & eCommerce

Web Infrastructure

•Strengthen the Balance

Sheet

•Targeted Acquisitions &

disposals

•Optimize Cost Structure

Sonic’s vision is to preserve the core automotive retail principles

that have driven its past success and at the same time

leverage the opportunities of scale.

Building for the Long Term

2008 Strategic Focus

2

•Acquire, Develop, and

Retain    Top Talent

•Launch Phase 1 of Best

-in-class automotive retail

training.

•Institutionalize Operational

Excellence

•Standardize & Improve

Sales & Marketing processes

•Leverage common systems

and centralize

Building for the Long Term

Used Vehicle Strategy

Trade

Trade

Desk

Desk

Phase II –

In Process

Phase III

Web-Tail

Maximize Margin

Maximize Margin

Volume Growth

Volume Growth

Increased Profitability

Increased Profitability

Right inventory, Right Location, Right Price

On-line

Branding

Virtual Lot

Sonic “Auto

Pilot”

National

National

Inventory

Inventory

Optimization

Optimization

Interactive

Internet

Basic Process rollout (best practices)

Less Wholesale/Keep more trades

Common Technology (S.I.M.S)

Inventory

Control

Process

Standardization

Phase I -

Complete

3

Building for the Long Term

The Quarter in Review

•

Business performed well in tough environment

•

On track with internal expectations –

reaffirming

full year guidance

•

Total revenue up

–

New vehicle environment challenging

–

Used volume continues to be a strength

•

Sticking with our strategy

–

Investment in Associates and technology progressing

as planned

4

Financial Performance

1.0%

2.5%

(9.6%)

(19.0%)

(28.9%)

(10.3%)

(20.5%)

30bps

30bps

5

2008

2007

Better/ 

(Worse)

Revenue

$1,901

$1,883

$18

Gross Profit

$306

$298

$7

–

Margin

16.1%

15.8%

Operating Income

–

Amount

$55

$61

($6)

–

Margin

2.9%

3.2%

Net Income

–

Continuing Operations

$18.0

$22.3

($4.2)

–

Total Operations

14.2

20.0

(5.8)

EPS -

Diluted

–

Continuing Operations

$0.44

$0.49

($0.05)

–

Total Operations

0.35

0.44

(0.09)

Q1

Same Store Revenue Growth –

Q1 2008

•

Challenging new vehicle environment

•

Used retail volume, F&I and customer pay expanding

(8.2%)

11.5%

0.7%

5.9%

(2.9%)

(23.5%)

(4.0%)

New

Used

Fixed

Operations

F&I

Sub Total

Wholesale

Total

6

-12.0%

-7.0%

-2.0%

3.0%

8.0%

13.0%

18.0%

23.0%

Sonic

-8.7%

10.2%

20.5%

Industry

-10.9%

2.1%

0.8%

Q1 New**

Q1 Used*

CPO Q1

New, Used, & CPO Retail Unit Sales

Same Store vs. Industry

*National Franchised Dealers

Focus on used vehicles is

paying off

*National franchise dealers

**Excluding fleet –

with fleet, industry off 8.0%

7

$984

$1,027

$1,067

$1,024

$930

$959

$986

$957

800

840

880

920

960

1,000

1,040

1,080

Q3 '07

Q4 '07

Q1 '08

Last 3 Qtr

2007/2008

2006/2007

F&I –

Same Store

8

8.5%

69.1%

70.9%

8.4%

Q1 2008

Q1 2007

All Other SG&A

Rent

SG&A Expenses as % of Gross Profit

77.6%

79.3%

170

bps

9

Inventory Management

Days Supply

10

Mar-08

Mar 08

Industry

New Vehicles

Domestic

(excluding Cadillac)

63.1

73.1

Luxury (

including Cadillac)

66.0

53.5

Import

58.6

53.2

Overall

63.1

62.6

Used Vehicles

35.7

Capitalization

53.7%

53.7%

57.6%

60.6%

54.0%

46.0%

39.4%

39.6%

43.7%

41.4%

2005

2006

2007

Act Q1 2008

Pro Forma Q1

2008

Equity

Debt

Mortgages

46.3%

42.4%

46.3%

Debt to Cap With Mortgages

2.8%

2.6%

4.9%

11

Summary

•

Reaffirming full year guidance –

we are on the right track

•

In a difficult economic environment, Sonic expanded revenue

in Used, F&I and Fixed Operations

•

Sticking to our strategy

–

Investing in our people

–

Digital marketing

–

Technology

–

Phase II of our used vehicle process

•

Q2 Outlook

–

New vehicle environment challenging in terms of both volume and gross

margin

–

Consumer confidence low

•

We are building for the long term

12

EX-99.3

Exhibit 99.3

SONIC AUTOMOTIVE, INC. DECLARES QUARTERLY CASH DIVIDEND

CHARLOTTE, N.C. – April 29, 2008 – Sonic Automotive, Inc. (NYSE: SAH), a leader in automotive retailing, today announced that its Board of Directors approved a quarterly dividend of $0.12 per share payable in cash for shareholders of record on June 15, 2008. The dividend will be payable July 15, 2008.

Sonic Automotive, Inc., a Fortune 300 company based in Charlotte, N.C., is one of the largest automotive retailers in the United States operating 168 franchises. Sonic can be reached on the Web at www.sonicautomotive.com.

Included herein is a forward-looking statement pertaining to an anticipated cash dividend to shareholders. There are many factors that affect management’s views about future events and trends of the Company’s business. These factors involve risks and uncertainties that could cause actual results or trends to differ materially from management’s view, including without limitation, economic conditions, risks associated with acquisitions and the risk factors described in the Company’s annual report on Form 10-K for the year ended December 31, 2007. The Company does not undertake any obligation to update forward-looking information.